Sandwich Generation Stretched Thin Financially

/PRNewswire/ -- Today, Generation Mortgage Company and Zogby International released alarming new data detailing the financial tribulations of the Sandwich Generation -- a sector largely comprised of Baby Boomers who are caring for their aging parents while supporting their own children. The study found that a majority of the Sandwich Generation give their household's current financial situation a negative rating and are having to make tough financial decisions and cutbacks.

The eye-opening results shed light on many financial hardships facing the Sandwich Generation. With unemployment near 10 percent, it is no surprise that 23 percent of those polled have lost a job recently and an additional 24 percent have taken a cut in pay or benefits. This has resulted in 17 percent failing to make a mortgage or rent payment on time due to insufficient funds.

According to the Generation Mortgage/Zogby International survey, finances have forced the Sandwich Generation to make serious cuts in their spending habits to survive during the recession. Seventy-three percent have decreased spending on entertainment, recreation or eating out. Moreover, 43 percent have decreased overall spending on food or groceries and three out of five of those polled say it is difficult to be a caregiver for their parents and/or in laws while financially supporting their children.

"The Sandwich Generation is probably the most financially vulnerable demographic to result from the recession," said Jeff Lewis, Chairman, Generation Mortgage Company. "They are unemployed or under-employed, financially supporting two generations in their family and are saddled with debt from bills and a mortgage. As this group looks to retire, their financial situation, coupled with the state of the economy, is not leaving them with many options."

The study also uncovered that 78 percent of those polled said they are worried about having enough money to retire comfortably and 23 percent have restructured their retirement plan in the last year due to financial reasons. Even more distressing, 52 percent responded that they plan to work part time during retirement to make ends meet.

"As the Sandwich Generation looks towards retirement," commented Lewis, "they should become educated on their available financial options. One of the financial options that is often overlooked is a reverse mortgage."

Zogby International was commissioned by Generation Mortgage to conduct an online survey of 271 adults who have children and are caregivers of parent(s). The survey was conducted from August 9-11, 2010. A sampling of Zogby International's online panel, which is representative of the adult population of the U.S., was invited to participate. Slight weights were added to region, age, race, gender, and education to more accurately reflect the population. The Margin of Error (MOE) is +/- 6.1 percentage points. Margins of Error are higher in sub-groups. The MOE calculation is for sampling error only.

-----
Community News You Can Use
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

US Real Estate Markets Moving Toward Recovery

/PRNewswire/ -- The US economy is recovering and it is beginning to show in job growth. The Bureau of Labor Statistics reported an increase of 290,000 jobs for April. The largest share, 27.5% was in professional and business services with 80,000 new jobs. The federal government followed with 66,000 new temporary workers to assist with the decennial census. Health care also grew, adding 20,000 workers and increasing its year-to-date total to 244,000. For the year, employment has expanded by 573,000 with 483,000 or 84% added to the private sector.

Meanwhile, unemployment increased from 9.7% to 9.9%, which oddly is a "good" sign. The increase is the result of people re-entering the employment market; meaning the economy is starting to recover in earnest. Thus far, the data is reflecting the traditional pattern of a slowly recovering economy.

Looking at past recessions the 1980s appears to be the most similar. It was capital constrained much like we are today. In the 1990s we were over-built and had the S & L crisis to resolve. The cry was "stay alive to '95." In early 2000 we had the dot com crisis and accounting scandals. Looking at the recession of the early 1980s as a guide, it may be 3 years or more before life begins to feel like "normal." The recession of the 1980s lasted 16 months running from July 1981 to November 1982. As a result of that downturn, unemployment peaked in November of 1982 at 10.8%. From that point it took 38 months for the economy to fully recover and for unemployment to fall below 7.0%. It was another 10 months before the economy was consistently below 7.0%. So, full recovery this cycle is likely 3 years away with an optimal selling period 3 to 4 years away at the earliest. Current signals suggest now is an optimal buying period.

Thus far, the current economy is consistent with expected patterns and our forecasts. Other data is also suggesting recovery. This is further illustrated in the most recently available quarterly data extracted from the National Council of Real Estate Investment Fiduciaries (NCREIF). Beginning in the second quarter of 2009, decreases in total returns began to steadily abate, and as of the most recent quarter turned slightly positive. This offers another strong signal that the market has reached bottom and is beginning to turn upward. This is also a strong signal that we are entering an optimal buying period.

With the use of our research Blumberg Capital Partners, our parent organization recognized this cyclical pattern early, and sold its assets between 2006 and 2008, near the cycle peak and closed its prior Fund. Now the trend is reflecting a market nearing bottom and moving toward recovery. In response, Philip Blumberg CEO of Blumberg Capital Partners is launching a new fund, the Blumberg Strategic Asset Fund and is again looking to acquire assets.
 -----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter:  @GAFrontPage

Small-Business Bankruptcy Filings Up 44% Year-over-year, Equifax Data Shows

/PRNewswire/ -- Commercial bankruptcies among the nation's more than 25 million small businesses increased by 44% from the third quarter of 2008 to the third quarter of 2009, according to Equifax Inc. (NYSE:EFX) , which analyzes its comprehensive small business database for the on-going study.

Comparing the month of September 2008 to September 2009 shows an increase of 27 percent. There were 9361 bankruptcy filings in September 2009 throughout the U.S., up from 7386 a year ago, according to the data.

California remains the most negatively affected state with eight MSA's (metropolitan statistical areas) among the 15 areas with the most commercial bankruptcy filings during September 2009.

Los Angeles, Riverside/San Bernardino and Sacramento metropolitan areas continued to lead the nation in small-business bankruptcy filings as they did at the end of the second quarter. The other MSA's with the most bankruptcy filings during the month include:

-- Denver-Aurora, CO
-- Santa Ana-Anaheim-Irvine, CA
-- San Diego-Carlsbad CA
-- Dallas-Plano-Irving, TX
-- Portland-Vancouver-Beaverton, OR-WA
-- California (excluding MSA's within the state)
-- Oakland-Fremont-Hayward, CA
-- Oregon (excluding MSA's within the state)
-- Chicago-Naperville-Joliet, IL
-- Houston-Sugar Land-Baytown, TX
-- San Jose-Sunnyvale-Santa Clara CA
-- Atlanta-Sandy Springs-Marietta, GA

"Economic pain is continuing for small businesses across the country. We're still seeing hefty increases in the number of bankruptcies in a lot of major metro areas." said Dr. Reza Barazesh head of North American research for Equifax's Commercial Information Solutions division.

"However, the 69 percent drop and 49 percent decline in bankruptcies in Charlotte and New York-White Plains respectively, and a 44 percent drop in Atlanta between the second and third quarters indicates that the East Coast may be experiencing an earlier recovery from the recession than the West Coast."

Charlotte - number four in June - dropped out of the top 15 entirely to 39th; Atlanta dropped from fifth to 15th; and New York - White Plains dropped from eighth to 24th.

Equally consistent with this east/west difference over the same period, the 11th, 12th and 13th MSAs with the greatest number of bankruptcies at the end of the second quarter of 2009 -- Santa Ana-Anaheim, Denver and San Diego -- increased in rank to 5th, 4th, and 6th by the end of the third quarter. Santa Ana-Anaheim increased three percent, Denver was up 13 percent and San Diego increased four percent.

For its research, Equifax reviewed and analyzed small business data for the month of September, the most recent month for which complete data is available, and compared it with results from September 2008. Equifax defines a small business as a commercial entity of less than 100 employees.

The company's report also listed the 15 metro areas with the fewest small-business bankruptcy filings. They are:

-- Charleston, WV
-- Trenton-Ewing NJ
-- Tallahassee FL
-- South Bend-Mishawaka IN-MI
-- New Jersey (excluding MSA's within the state)
-- Holland-Grand Haven MI
-- Gainesville FL
-- Baton Rouge LA
-- Wilmington NC
-- Toledo OH
-- Roanoke VA
-- Lubbock TX
-- Lancaster PA
-- Springfield MA
-- Savannah GA

For the analysis, Equifax analyzed Chapter 7, 11 and 13 filings. Chapter 7 is a liquidation proceeding in which a debtor receives a discharge of all debts; while Chapter 11 and Chapter 13 are reorganization bankruptcies enabling individuals and companies to pay off debt over a set period of years.

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
www.artsacrossgeorgia.com
Arts Across Georgia